Which Method(s)for Dealing with Under/over Allocated Overhead Provides the Most

question 36

Multiple Choice

Which method(s) for dealing with under/over allocated overhead provides the most accurate inventory and cost of goods sold account balances when the amount is material?

• A)proration approach
• B)adjusted allocation-rate approach
• C)immediate write-off to cost of goods sold
• D)either proration or adjusted allocation-rate approach
• E)either the proration approach or the immediate write-off to cost of goods sold

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Definitions:

Fixed Action Pattern

An instinctive behavioral sequence that is relatively invariant within the species and almost inevitably runs to completion once initiated.

Dishabituation

The renewal of a response, previously habituated, following a change in stimulus.

Dehabituation

The revival of a response that had been previously habituated, often as a result of presenting a new, novel stimulus.

Novel Situation

A new or unfamiliar situation that requires adaptive behaviors or cognitive processes to navigate.